TB MC Qu. 5-143 (Algo) Present and future values

Present and future values of 1 at 11% are presented below.

	PV of $1	FV of $1	PVA of $1	FVA of $1
1	0.90090	1.11000	0.90090	1.0000
2	0.81162	1.23210	1.71252	2.1100
3	0.73119	1.36763	2.44371	3.3421
4	0.65873	1.51807	3.10245	4.7097
5	0.59345	1.68506	3.69590	6.2278
6	0.53464	1.87041	4.23054	7.9129

Polo Publishers purchased a multi-color offset press with terms of $80,000 to be paid at the date of purchase, and a noninterest-bearing note requiring payment of $60,000 at the end of each year for four years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:

Multiple Choice

$266,147.

$248,196.

$140,000.

$186,147.